Yesterday in AI: 30 May 2026 — 5 In-House Models: Microsoft's OpenAI Breakup

Microsoft confirmed 5 homegrown AI models to power GitHub Copilot by August; Visa invested in Replit to put AI agents on payment rails; DeepSeek permanently locked in its 75% V4-Pro price cut.

By OMC Editorial on 2026-05-31

TL;DR — Microsoft will debut 5 homegrown AI models at Build 2026, led by a coding model Project Polaris set to replace OpenAI in GitHub Copilot by August; Visa invested in Replit and registered AI agents in its Trusted Agent Protocol so they can transact money autonomously; DeepSeek made its 75% V4-Pro price cut permanent, dropping input tokens to $0.44/M. --- 1️⃣ Microsoft's 5-Model Breakup With OpenAI - What: Reuters and The Information May 29 report Microsoft will unveil five homegrown AI models at Build 2026 June 2–3, San Francisco: a coding model codenamed Project Polaris, plus MAI-Image-2.5, MAI-Voice-2, MAI-Transcribe-1.5, and a reasoning model. - Why it matters: Claude Code and Cursor have eroded GitHub Copilot's lead; Microsoft is betting its own models will outperform rented OpenAI ones at lower cost while reducing legal and strategic dependency. - Key number: Microsoft shares jumped 3% on the report. Mustafa Suleiman's internal AI team was freed from contractual constraints after Microsoft renegotiated its OpenAI partnership in April 2026. The breadth of the lineup — spanning code, transcription, reasoning, speech, and image generation — signals a full internal AI stack, not a one-off supplement. GitHub Copilot has 4.7 million paid subscribers up 75% year-over-year but has faced service outages and churn to rivals. Project Polaris is optimized for code understanding and generation; general availability is targeted for August 2026. Azure AI Foundry will also receive major upgrades at Build. 📎 cybernewshttps://cybernews.com/ai-news/microsoft-new-homegrown-ai-models-copilot-github/ · The Informationhttps://www.theinformation.com/newsletters/ai-agenda/microsoft-release-new-coding-model-next-week-comeback-attempt · Windows Forumhttps://windowsforum.com/threads/microsoft-build-2026-homegrown-ai-models-to-power-github-copilot.420887/ · Testing Cataloghttps://www.testingcatalog.com/microsoft-readies-new-mai-voice-and-image-models-for-build-2026/ --- 2️